Electronic Proof of Auto Liability Insurance in Texas

A Required Insurance Policy

The State of Texas requires that all drivers carry at least liability auto insurance coverage. This law seeks to protect all motorists involved in accidents on the road. At a minimum, drivers should be able to pay for harm caused by their automobiles; adequate liability insurance coverage enables them to meet this requirement.

When law enforcement officers stop drivers in Texas, they sometimes request proof of auto insurance liability coverage from drivers. This request often occurs routinely when an officer writes a traffic ticket, for instance. Insurance companies furnish insured drivers with documentation so that a driver can display proof of coverage.

Greater Convenience

In 2013, Texas passed a new law that permitted drivers to display electronic proof of auto insurance liability coverage. This process offers greater convenience for drivers who recently obtained auto insurance liability policies, because they can demonstrate proof of coverage over a tablet, smart phone, laptop or other Internet connected device.

The new law also assists drivers who happen to change auto insurance liability carriers. The driver in many cases can simply go online and log into an insurance company website to display proof of having purchased this important mandatory type of insurance coverage.

Lower Costs

Another potential benefit of the recent law passed in Texas may involve reduced costs for auto insurance liability policy carriers. People seeking Cheap Car Insurance certainly appreciate this development, since it may lower the cost of doing business for some insurance firms and allow insurers to offer more competitive rates.

When customers opt to use electronic proof of coverage, the insurance company does not need to replace insurance cards documenting proof of auto insurance liability coverage as frequently. The firm saves labor and mailing costs.

Environmental Benefits And More

Yet a third advantage provided by the new legislation pertains to potential environmental benefits. By enabling millions of residents of Texas to “go paperless” and rely instead on online evidence of auto insurance liability coverage, lawmakers helped insurers conserve natural resources. Over the course of time, these environmental benefits of reduced paperwork will likely add up.

From the standpoint of the officers who perform traffic stops, the new laws likely hold some benefits as well. For one thing, an officer will obtain the ability to confirm that auto insurance liability coverage exists almost instantaneously. In the past, when drivers relied solely on paper documentation, an insured driver sometimes misplaced or lost the required paperwork. Now, even when this situation occurs, the auto insurance liability coverage provider can supply rapid electronic proof that a policy exists.


The law that took effect on September 1, 2013 allowing drivers to display electronic proof of auto insurance liability coverage demonstrates the increasingly important role of the Internet in modern society. It also offers one timely way for the insurance industry to meet the needs of customers reliably and more efficiently.